US soya futures rose for a fourth consecutive session on Friday as China said it would waive import tariffs for some American farm products, renewing optimism for a possible trade agreement between Washington and Beijing.
Tariff waivers will be based on applications by individual companies for US soyabean and pork imports, China's finance ministry said in a statement, citing a decision by the country's Cabinet. It did not specify the quantities involved.
The statement supported futures prices because China, the world's biggest soyabean importer, has slashed purchases from the United States since the start of the countries' trade war last year. Beijing imposed retaliatory tariffs on US soyabeans, and China has been buying from South America instead.
US traders and farmers hope that negotiations will ease the trade war and increase Chinese purchases of American agricultural products. The tariff waivers are "good mood music," White House economic adviser Larry Kudlow said.
The most-active soyabean contract on the Chicago Board of Trade was up 5-1/2 cents at $8.89-3/4 a bushel by 11:45 a.m. CST (1745 GMT). It reached its highest since Nov. 26, after rebounding a near three-month low of $8.67-1/2 on Monday.
Short-covering helped underpin gains, said Matt Wiegand, commodity broker for FuturesOne. Recent declines left the market in an "oversold condition," he added.
CBOT wheat and corn eased. Recent gains in wheat futures were overdone because there is not shortage of the grain, a trader said. CBOT wheat was down 3-1/4 cents at $5.20-1/2 a bushel, while corn was down 1-1/4 cents at $3.75-1/2 a bushel.
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